subject: Know about EMI's and legal matters for hassle free under-construction property deals [print this page] Know about EMI's and legal matters for hassle free under-construction property deals
Buying an under-construction property saves you cash. Real estate resources will tell you of the facility to pay in parts than when you are buying a ready flat where you have to do the one time payment. The problem lies in the under-construction property is that if the project is delayed then you are in tension because you are unable to possess the property. Moreover, you will be in trouble if you have taken a bank loan. The bank will stop giving loan once for delayed projects. You still have to pay the interests on the amount of loan already disbursed.
Look into matters carefully in real estate guide before investing in an under-construction property. Take for example if you are staying in a rented flat and booked a under-construction property, suppose the property gets awaited in certain legal clearances and the process takes 18 months. For 18 months, you have to pay your rent and your EMI's against your bank loan.
Many people opt for instant EMI to cash in the tax benefit but the problem rises if the construction is delayed. Opt for property that allows payments in tranches according to the construction work. It means you pay in part for the according to the construction proceeds; suppose the construction is stuck in between, you will not be under pressure for future payments. Buying a property is one of the biggest investments of lifetime. Beware of liquidity risks involved in buying under construction property without a no objection certificate from the developer unless you pay the transfer fees you cannot resale your flat if there is no provision for cooperative home buyers housing society.
Often you may get tempting offers from builders for 25%discounts they are builders who not enough creditworthy to mainstream lenders for loan and you may suffer the burnt of an unfinished project.
